As a musician in talks with a label currently, I find it sad to see people's ignorance to how this works.
Yes, artists get little from CD sales. This has been beaten to death. Also beaten to death is the benefits to downloading (finding artists you never would have, sampling a CD before you buy, etc).
However, so many people fail to look at the elements in addition to the money. Labels see sales. They don't see how many people have a song on LimeWire. There's this knight with shining armor perception that people downloading are doing something noble, because the industry is bad and they're screwing the labels for not paying money. Plus, everyone mostly focuses on the small percentage of artists who 'make it' and earn millions.
But sadly, few look at the effect on the labels who aren't big - but aren't entirely underground. Since CD sales go down, this directly affects their ability for tours, promotion, signing bonuses, record contracts, etc. I've heard many times artists who don't get backing for a tour (and go red because of it), because the label just can't support them. There's thousands of people downloading their songs - but since only a fourth of that number actually bought the CD - the label sees no benefit, and can't financially support it.
The same thing with promotion. The same thing with signings. The days of a band getting a 3 album deal are dwindling. Now a label only wants a 1 album deal. Then you get very little for bonuses or incentives. There's either no lump-sum up front or very little. The days of being a musician and having a second job/career is becoming more and more a reality. You can shout - "But that's cause the labels are money hungry!". Just like people not wanting to buy a CD because it's overpriced.
Non-major labels are going bankrupt, dropping out, and cutting rosters because they just can't fund it. A band is no longer an investment, because it is to risky. Labels want a band that will generate sales, and if they sign a new band and the sales are small (though they're pretty big online), they won't get a second album deal.
But everone focuses on the big label executives being rich, the artists swimming in money, and the evil of the RIAA. The industry sucks - plain and simple. But this quest to kill the beast, is really killing the foundation. We'll always have those major labels making profits. But for labels that aren't major, it's a bleak period. Sales keep falling, profits keep falling, and therefore artists signings keep falling. And for those artists that are getting deals, the deals suck in comparison to what they were 10-15 years ago.
So all in all, there's really nothing to do. People will keep downloading more and more. Just as I feel every other type of downloading (movies, games, software) will increase to the extent that other industries feel it. It's already starting to show signs in movie sales
Yes, artists get little from CD sales. This has been beaten to death. Also beaten to death is the benefits to downloading (finding artists you never would have, sampling a CD before you buy, etc).
However, so many people fail to look at the elements in addition to the money. Labels see sales. They don't see how many people have a song on LimeWire. There's this knight with shining armor perception that people downloading are doing something noble, because the industry is bad and they're screwing the labels for not paying money. Plus, everyone mostly focuses on the small percentage of artists who 'make it' and earn millions.
But sadly, few look at the effect on the labels who aren't big - but aren't entirely underground. Since CD sales go down, this directly affects their ability for tours, promotion, signing bonuses, record contracts, etc. I've heard many times artists who don't get backing for a tour (and go red because of it), because the label just can't support them. There's thousands of people downloading their songs - but since only a fourth of that number actually bought the CD - the label sees no benefit, and can't financially support it.
The same thing with promotion. The same thing with signings. The days of a band getting a 3 album deal are dwindling. Now a label only wants a 1 album deal. Then you get very little for bonuses or incentives. There's either no lump-sum up front or very little. The days of being a musician and having a second job/career is becoming more and more a reality. You can shout - "But that's cause the labels are money hungry!". Just like people not wanting to buy a CD because it's overpriced.
Non-major labels are going bankrupt, dropping out, and cutting rosters because they just can't fund it. A band is no longer an investment, because it is to risky. Labels want a band that will generate sales, and if they sign a new band and the sales are small (though they're pretty big online), they won't get a second album deal.
But everone focuses on the big label executives being rich, the artists swimming in money, and the evil of the RIAA. The industry sucks - plain and simple. But this quest to kill the beast, is really killing the foundation. We'll always have those major labels making profits. But for labels that aren't major, it's a bleak period. Sales keep falling, profits keep falling, and therefore artists signings keep falling. And for those artists that are getting deals, the deals suck in comparison to what they were 10-15 years ago.
So all in all, there's really nothing to do. People will keep downloading more and more. Just as I feel every other type of downloading (movies, games, software) will increase to the extent that other industries feel it. It's already starting to show signs in movie sales